Apollo CEO Marc Rowan Discusses the Impact of President Trump’s Tariffs Policy
On the morning of August 23, 2019, Apollo Global Management LLC’s CEO, Marc Rowan, joined CNBC’s “Squawk Box” to discuss the far-reaching consequences of President Trump’s recently announced tariffs policy. The interview delved into various aspects of the policy, its implications for U.S. trade, the economy, and the private credit market.
Resetting U.S. Trade Policy
Rowan began by acknowledging the President’s intent to reset U.S. trade policy. He noted that the administration’s goal was to address longstanding trade imbalances and protect American industries. He added that the administration’s approach was not without risk, as it could lead to retaliatory measures from trading partners.
Impact of Policy Uncertainty
When asked about the impact of policy uncertainty, Rowan expressed concern. He noted that uncertainty could lead to decreased investment, lower economic growth, and increased volatility in the financial markets. He emphasized that businesses need predictability to plan for the future.
The Off-Ramp for Tariffs
The conversation then turned to the topic of an off-ramp for tariffs. Rowan stated that a negotiated settlement was the best-case scenario. He added that the markets would welcome a de-escalation of tensions and a return to normalcy in U.S.-China trade relations.
Recession Concerns
When asked about recession concerns, Rowan acknowledged the risks. He noted that a prolonged trade dispute could lead to a slowdown in economic growth. However, he also pointed out that the U.S. economy was fundamentally strong and that the Federal Reserve had the tools to address any potential economic downturn.
The Role of the Federal Reserve
The conversation then shifted to the role of the Federal Reserve. Rowan noted that the Fed had the power to stabilize the economy through monetary policy. He added that the Fed could cut interest rates to stimulate growth and provide liquidity to the markets.
Tariff Impact on the Private Credit Market
The interview concluded with a discussion on the tariff impact on the private credit market. Rowan stated that the tariffs could lead to increased defaults and lower valuations for some private credit assets. However, he also noted that the private credit market was resilient and that it could provide investors with attractive risk-adjusted returns in a volatile economic environment.
Personal and Global Implications
Based on other online sources, the implications of President Trump’s tariffs policy extend beyond the private credit market. For individuals, the policy could lead to higher prices for consumer goods and increased uncertainty in the job market. For the world, the policy could lead to a global economic slowdown and increased tensions between major trading powers.
Conclusion
In conclusion, Marc Rowan’s interview on CNBC’s “Squawk Box” provided valuable insights into the far-reaching consequences of President Trump’s tariffs policy. The interview highlighted the policy’s implications for U.S. trade, the economy, and the private credit market. It also underscored the importance of predictability and the potential risks of prolonged policy uncertainty.
- Trade policy reset: The administration’s goal is to address longstanding trade imbalances and protect American industries.
- Policy uncertainty: Decreased investment, lower economic growth, and increased financial market volatility.
- Off-ramp for tariffs: A negotiated settlement is the best-case scenario.
- Recession concerns: Prolonged trade disputes could lead to a slowdown in economic growth.
- Federal Reserve: The Fed has the power to stabilize the economy through monetary policy.
- Private credit market: Increased defaults and lower valuations for some assets.
- Personal and global implications: Higher consumer goods prices, increased job market uncertainty, and a global economic slowdown.
